A potential merger in the agribusiness industry would create the largest fertilizer firm in the world, based on sales. Yara International ASA (OTC: YARIY), based in Norway, is negotiating with CF Industries Holdings, Inc. (NYSE: CF), but there is no guarantee of a deal.
The combined company would have annual sales of $20 billion, three times that of the largest fertilizer firm in terms of market capitalization, Potash Corp./Saskatchewan (NYSE: POT).
Mergers--even merger talks--can return premiums to investors. With the agribusiness being a true global business model it makes sense for more consolidation in the sector. To play the entire sector, the best strategy is to look at the available agriculture ETFs.
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PowerShares Global Agriculture Port (NASDAQ: PAGG)
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